Welcome to Extreme Investor Network, your go-to source for all things business news. Today, we’re talking about McDonald’s and their recent decision to extend their $5 value meal promotion in most of its U.S. markets.
In a memo obtained by CNBC, McDonald’s executives announced that nearly every business unit, covering 93% of its restaurants, has voted to extend the promotion past its original end date. The $5 value meal, which includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink, was initially set to last for about a month but will now continue through August in most locations.
According to Myra Doria, national field president, and Tariq Hassan, U.S. chief marketing and customer experience officer, the $5 value meal deal has been successfully driving traffic back to McDonald’s restaurants. This move comes as restaurants across the board are offering deals to attract customers, especially as lower-income diners are more conscious of price increases due to inflation.
Competitors like Burger King, Wendy’s, Taco Bell, and even Starbucks have also been offering deals ranging from $3 to $5 to entice value-conscious consumers. Coca-Cola has even stepped in to provide marketing funds to make the initial value offer more appealing for McDonald’s franchisees.
In a highly competitive environment, attracting customers is crucial for sustained growth. McDonald’s is scheduled to report earnings on July 29, so stay tuned for more updates on how this promotion is impacting the fast-food giant.
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